Lumentum Holdings Inc. (NASDAQ:LITE) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Lumentum Holdings Inc. received a consensus recommendation of "Moderate Buy" from analysts, with 12 buyers, 2 strong buyers, 2 holds, and 1 sell rating.
• The average 1-year price target set by analysts for Lumentum is $88.20, with broker reports varying widely.
• In its most recent earnings report, Lumentum beat analysts' estimates with $0.57 earnings per share and a revenue of $425.20 million, up 16% year-over-year.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) has received an average rating of "Moderate Buy" from the seventeen ratings firms that are presently covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, two have issued a hold rating, twelve have assigned a buy rating and two have given a strong buy rating to the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $88.20.

A number of equities research analysts have weighed in on the company. Northland Securities set a $80.00 price objective on Lumentum in a report on Wednesday, May 7th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $105.00 price target on shares of Lumentum in a research note on Thursday, June 12th. Wolfe Research assumed coverage on Lumentum in a research report on Tuesday, July 8th. They issued an "outperform" rating on the stock. Morgan Stanley reiterated a "positive" rating on shares of Lumentum in a research note on Monday. Finally, UBS Group reduced their target price on shares of Lumentum from $96.00 to $78.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 7th.

Lumentum Trading Up 1.0%

Shares of Lumentum stock opened at $111.13 on Friday. Lumentum has a 52-week low of $40.90 and a 52-week high of $114.12. The firm has a market capitalization of $7.71 billion, a PE ratio of -17.23 and a beta of 1.33. The company has a debt-to-equity ratio of 2.91, a current ratio of 4.72 and a quick ratio of 3.53. The company's fifty day moving average price is $93.94 and its two-hundred day moving average price is $77.76.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results on Tuesday, May 6th. The technology company reported $0.57 earnings per share for the quarter, beating analysts' consensus estimates of $0.50 by $0.07. The business had revenue of $425.20 million for the quarter, compared to analysts' expectations of $418.18 million. Lumentum had a negative net margin of 29.87% and a negative return on equity of 8.69%. The firm's revenue for the quarter was up 16.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.09 earnings per share. On average, analysts expect that Lumentum will post 0.03 EPS for the current year.

Insider Buying and Selling at Lumentum

In other news, SVP Jae Kim sold 4,577 shares of the stock in a transaction that occurred on Friday, May 16th. The shares were sold at an average price of $77.98, for a total transaction of $356,914.46. Following the sale, the senior vice president directly owned 31,534 shares of the company's stock, valued at $2,459,021.32. This represents a 12.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Yuen Wupen sold 4,716 shares of the stock in a transaction on Thursday, May 15th. The shares were sold at an average price of $76.87, for a total value of $362,518.92. Following the completion of the transaction, the insider owned 82,957 shares in the company, valued at $6,376,904.59. The trade was a 5.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 89,768 shares of company stock worth $8,294,633 over the last quarter. Corporate insiders own 0.19% of the company's stock.

Institutional Trading of Lumentum

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Robeco Schweiz AG lifted its position in Lumentum by 9.3% during the 2nd quarter. Robeco Schweiz AG now owns 575,819 shares of the technology company's stock valued at $54,737,000 after purchasing an additional 49,003 shares during the period. Keynote Financial Services LLC raised its stake in shares of Lumentum by 1.8% during the second quarter. Keynote Financial Services LLC now owns 8,396 shares of the technology company's stock worth $798,000 after buying an additional 148 shares during the last quarter. S Squared Technology LLC acquired a new position in Lumentum in the second quarter valued at approximately $951,000. Allworth Financial LP raised its position in shares of Lumentum by 121.3% during the 2nd quarter. Allworth Financial LP now owns 737 shares of the technology company's stock valued at $70,000 after acquiring an additional 404 shares during the last quarter. Finally, ProShare Advisors LLC acquired a new position in shares of Lumentum in the 2nd quarter valued at $292,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

Lumentum Company Profile

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.

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